There is a lot of chaos in the cryptocurrency market right now, which is making investors rush to Bitcoin, which is generally seen as the safest asset in the digital currency ecosystem.
Bitcoin’s market share has reached a nine-week high of 57% thanks to this trend. While the market is in a mess, Bitcoin has become a safe haven. On the other hand, altcoins are losing the most value as people sell them.
When the market is uncertain, investors tend to move their money toward investments that they think are safer. This trend can be seen in how the crypto market has been acting lately, with Bitcoin becoming the best choice for people who want to ride out the storm. The market as a whole lost a huge $110 billion in value over the past week. Altcoins were hit especially hard. A lot of people have lost interest in projects like Akash Network, Floki, and Chiliz; each has dropped over 30%.
Bitcoin’s Long-Term Stability
Bitcoin is popular because it has been around for a long time and is thought to be more stable than other cryptocurrencies. Because of this idea, a lot of buyers have run to Bitcoin, leaving altcoins open to the harsh market conditions. This change shows that more people think Bitcoin is a better investment during times of market trouble.
In spite of Bitcoin’s current popularity, some experts warn people to be careful. Jelle, an experienced crypto trader, says that Bitcoin’s dominance might not last in the long run.
He says that altcoins could make up for lost ground once Bitcoin goes over its previous all-time high of $74,000, thanks to their new features and huge growth potential. This point of view emphasizes how the crypto market goes through cycles, with different products doing better at different times.
People are feeling negative because the market as a whole is going down, and Bitcoin is having a hard time staying in a key support zone around $64,500. Because the market is dealing with unpredictability, most people are being cautious.
There are, however, signs of hope. It’s interesting that while the crypto market has been going down, tech stocks have been doing well. Today is their seventh day in a row of wins. This difference suggests that the current slowdown might be unique to the crypto market and not a sign of a bigger problem with the economy as a whole.
Because the crypto market is known for being very volatile, quick changes of direction are always possible. Digital assets have had big ups and downs in the past, and what goes down can quickly go back up.
For investors, this natural volatility is both a risk and a chance. Fear & Greed Index recently went up to 64, which shows that even though prices are going down, some buyers are still optimistic, which is a sign of irrational exuberance.
*The main picture is from Photlurg and the data is from TradingView.
